Fast Track Dispute Resolution Program Labelled An IRS ‘Success Story’

by Leroy Baker, Tax-News.com, New York

20 July 2004

The workings of the Internal Revenue Service’s Fast Track Dispute Resolution Program have been praised in a Treasury report, which hailed the project as a rare “success story” for the IRS.

The program, which aims to accelerate resolution of disputed tax issues with America’s largest taxpayers, initially ran as a pilot project commencing in November 2001 and has now converted into a permanent office of the IRS. It is generally open to all firms served by the Large and Mid-sized Business Division of the agency.

According to an examination of the project by the Treasury Inspector General for Tax Administration, 142 taxpayers were accepted into the program during the pilot period, resulting in $6.7 billion of disputed tax adjustments being resolved within a 120 timeframe.

"Comprehensive data were not available on the extent to which the pilot program saved taxpayers and the IRS time and money, largely because time and cost data have not been widely tracked or evaluated regarding individual tax issues in the IRS. However, both taxpayers and the IRS believe using the Fast Track process to avoid the traditional appeals or litigation processes produced savings," stated the TIGTA report, concluding:

"IRS considers the pilot program one of its 'success stories' in reducing the time and cost of resolving tax issues."

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